The growth of this market is propelled by the increase in demand for electric vehicle, strict government mandates on fuel economy, growing demand for smart devices and other consumer electronics, and development toward enhancement of lithium ion batteries.

According to the new market research report “Lithium Ion Battery Market by Type (Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Nickel Manganese Cobalt), Power Capacity (0 to 3000mAh, 3000mAh to 10000mAh, 10000mAh to 60000mAh), Industry, and Geography – Global Forecast to 2022”, the lithium ion battery market is expected to be valued at USD 68.97 Billion by 2022, growing at a CAGR of 16.6% between 2016 and 2022. Factors that are driving the growth of the market include increase in demand for electric vehicle (EV), strict government mandates on fuel economy, growing demand for smart devices and other consumer electronics, and development toward enhancement of lithium ion batteries.

Lithium nickel manganese cobalt (Li-NMC) type batteries are used in application areas like e-bikes, power tools, medical equipment, and other electric powertrains. Use of cobalt in 1:1:1 ratio with a combination of nickel and manganese gives the optimum result while keeping the cost low, in spite of cobalt being expensive, owing to a low proportion of cobalt in the combination. The energy density of Li-NMC batteries is its primary strength.

“The market for 3000mAh to 10000mAh power capacity batteries expected to grow at the highest rate during the forecast period”

The heavy power capacity of the batteries, ranging from 3000mAh to 10000mAh, makes them suitable for the use in EVs and industrial applications. The increasing market of consumer electronics and smartphones has increased the need of batteries with higher power capacity which can keep the device running for longer hours and at the same time giving an optimum experience of the device due to large screen and power backup service. All these factors would lead to the higher adoption of lithium ion battery systems having 3000mAh to 10000mAh power capacity.

“Consumer electronics industry expected to hold the largest share of the lithium ion battery market”

The consumer electronics industry is expected to hold the largest share of the overall lithium ion battery market. Lithium ion batteries are a preferred choice for consumer electronics products as a portable power source because of the features such as high energy density and less recharge time. These are low on maintenance and light in weight compared to other rechargeable batteries; therefore, these are widely adopted in consumer electronics products such as mobile phones, tablets, and laptops.

“Europe expected to hold the second-largest share of the lithium ion battery market during the forecast period”

The automobile industry in Europe is strategic industry with the leanest production processes and optimized use of energy for manufacturing. Increasing market share of EV in Europe is prominently supporting the adoption of lithium ion batteries. Increasing funding from the government is supporting the adoption of lithium ion batteries in electric cars. GREENLION is a project funded by EU for manufacturing cheaper and dependable lithium ion batteries for electric cars. These are some of the factors contributing to the growth of the lithium ion battery market in Europe.